Question 1

The Permanent School Fund was created in

Accepted Answer

A)   1854.
B)   1932.
C)   1996.
D)   2001.
E)   2010.F) B) and C)
G) A) and E)

Question 2

Which statement regarding state-federal spending in Texas is true?

Accepted Answer

A)   Texas spends more on state-federal programs than most states do.
B)   Texas spends less on state-federal programs than most states do.
C)   Texas spends more than any other state for state-federal programs because Texans favor massive public welfare programs.
D)   State-federal spending in Texas has been historically high relative to that of the rest of the states.
E)   Federal efforts to balance the budget have virtually eliminated all state-federal spending in Texas.F) A) and B)
G) None of the above

Question 3

Following a legislative decision in 2003 to reduce state funding to higher education, which source of university revenue began to increase most rapidly?

Accepted Answer

A)   gasoline taxes
B)   student tuition and fees
C)   general revenues
D)   state income taxes
E)   Texas state lottery revenuesF) A) and D)
G) A) and C)

Question 4

Overall, the tax system in Texas is generally considered to be regressive, which means that

Accepted Answer

A)   the tax burden consumes a greater percentage of income received by lower-income individuals.
B)   the tax burden consumes a greater percentage of the income earned by higher-income individuals.
C)   everybody pays the same percent of his or her income in taxes.
D)   the more income one has, the larger the percentage of it that goes to pay taxes.
E)   higher-income individuals pay progressively more taxes based on their incomes.F) A) and D)
G) B) and E)

Question 5

According to our text, what determines the amount of tax revenue generated from oil and natural gas produced in Texas?

Accepted Answer

A)   the minimum wage and unemployment rate
B)   market price and the amount produced
C)   federal regulations and excise taxes imposed by the federal government
D)   pipeline construction and environmental issues
E)   refinery capacity and foreign competitionF) A) and E)
G) B) and D)

Question 6

Prior to 2003, tuition for public colleges and universities in Texas was set by the

Accepted Answer

A)   Board of Education.
B)   state Department of Education.
C)   governor's Department of Education.
D)   state legislature.
E)   federal government.F) D) and E)
G) All of the above

Question 7

Who pays the greatest portion of their income in property taxes?

Accepted Answer

A)   business owners
B)   wealthy homeowners and renters
C)   poor homeowners and renters
D)   renters
E)   everybody pays the sameF) A) and E)
G) A) and D)

Question 8

Which of the following statements is true?

Accepted Answer

A)   During the 2011 legislative session, it became apparent that the booming state economy had dramatically increased state revenues.
B)   The effects of the Great Recession did not reach Texas, as the state enjoyed surplus revenues.
C)   The legislative session was particularly difficult because the Great Recession had significantly reduced state revenue.
D)   The Texas legislature did not meet in 2011.
E)   Resulting from the effects of the 2011 economic recession, the state budget deficit equals GDP.F) None of the above
G) C) and D)

Question 9

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is at the heart of the budget process in Texas?

Accepted Answer

A)   the lieutenant governor
B)   the Texas Higher Education Coordination Board
C)   the Texas comptroller
D)   the Texas Education Commission
E)   unionsF) None of the above
G) A) and E)

Question 11

Federal expenditures play an important role in the Texas state budget.

Accepted Answer

A) True 
 B)False

Question 12

Can Texas control spending when citizens are reluctant to see so many services cut?

Accepted Answer

Texas, like any state, faces the challen...

Question 13

According to the text, just as the economy began to improve and state revenues started increasing, a new threat arose to threaten the newly balanced budget. It was the

Accepted Answer

A)   rising interest rates that increased the cost of borrowing.
B)   increasing health care costs due to recent efforts to reform the health care system.
C)   underfunded state pension system.
D)   rising salaries of teachers.
E)   state's public unions threatening a strike.F) A) and C)
G) B) and D)

Question 14

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session.

Accepted Answer

A) True 
 B)False

Question 15

Texas will never have a personal income tax in the future because

Accepted Answer

A)   Bullock proposed a constitutional amendment that effectively gave the electorate a veto over any proposal for an income tax.
B)   Bullock vetoed a bill proposing a state income tax.
C)   former governor John Connally and then-governor Ann Richards were against the idea.
D)   county commissioners must approve the personal income tax amendment, which is unlikely.
E)   the federal government must approve the personal income tax amendment, which is unlikely.F) A) and B)
G) A) and C)

Question 16

The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall NOT exceed ________ percent of the state's budget in any biennium.

Accepted Answer

A)   1
B)   15
C)   25
D)   40
E)   There is no limit.F) A) and E)
G) B) and D)

Question 17

From an overall standpoint, which statement is true?

Accepted Answer

A)   The Texas economy is closely tied to the national economy.
B)   The Texas economy is largely immune to the national economy.
C)   The Texas economy is much larger than the national economy.
D)   The Texas budget cycle effectively insulates the state economy from the rest of the world.
E)   Oil and natural gas production within the state's borders generate over two-thirds of state tax revenue.F) C) and E)
G) A) and C)

Question 18

Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with

Accepted Answer

A)   many choices as to how to balance the budget.
B)   few choices as to how to balance the budget.
C)   only one choice as to how to balance the budget.
D)   no other option than to borrow heavily, thereby increasing state debt.
E)   This issue is not discussed in the text and is therefore of no consequence.F) None of the above
G) B) and D)

Question 19

One significant component of the budget process that is relatively unique to Texas is

Accepted Answer

A)   the constitutional mandate that Texas legislators write a budget every two years.
B)   that, relative to other states, the rate of Texas employment and economic growth is extremely volatile.
C)   a federal budget cycle that complicates the state budgeting process.
D)   the unpredictability of natural disaster funding.
E)   the governor's political agenda, which is influenced by election results.F) A) and D)
G) A) and C)

Question 20

The ________ is a dedicated fund established by the constitution for the support of public education in the state.

Accepted Answer

A)   Permanent University Fund
B)   Available School Fund
C)   National Research University Fund
D)   state lottery
E)   Higher Education FundF) A) and D)
G) C) and D)

Exam 11: Public Finance in Texas

In addition to the state sales tax of 6.25 percent, county, city, and metropolitan transit authorities are allowed to impose an additional 2 percent sales tax.

Correct AnswerverifiedShow Answer

Which statement regarding state-federal spending in Texas is true?

Correct AnswerverifiedShow Answer

Prior to 2003, tuition for public colleges and universities in Texas was set by the

Correct AnswerverifiedShow Answer

From an overall standpoint, which statement is true?

Correct AnswerverifiedShow Answer

According to our text, what determines the amount of tax revenue generated from oil and natural gas produced in Texas?

Correct AnswerverifiedShow Answer

The Permanent School Fund was created in

Correct AnswerverifiedShow Answer

One significant component of the budget process that is relatively unique to Texas is

Correct AnswerverifiedShow Answer

Texas will never have a personal income tax in the future because

Correct AnswerverifiedShow Answer

Given the budget structure and constitutional limitations upon spending and taxing, legislators seeking to balance the budget are left with

Correct AnswerverifiedShow Answer

Under Texas's budgetary system, there is NO power to shift monies between agencies or programs when the legislature in NOT in session.

Correct AnswerverifiedShow Answer

Can Texas control spending when citizens are reluctant to see so many services cut?

Correct AnswerAnswered by ExamLex AITexas, like any state, faces the challen...View AnswerShow Answer

Who pays the greatest portion of their income in property taxes?

Correct AnswerverifiedShow Answer

The ________ is a dedicated fund established by the constitution for the support of public education in the state.

Correct AnswerverifiedShow Answer

The Texas Constitution specifies that state payments for assistance to needy children and their caretakers shall NOT exceed ________ percent of the state's budget in any biennium.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Following a legislative decision in 2003 to reduce state funding to higher education, which source of university revenue began to increase most rapidly?

Correct AnswerverifiedShow Answer

Federal expenditures play an important role in the Texas state budget.

Correct AnswerverifiedShow Answer

Which of the following is at the heart of the budget process in Texas?

Correct AnswerverifiedShow Answer

According to the text, just as the economy began to improve and state revenues started increasing, a new threat arose to threaten the newly balanced budget. It was the

Correct AnswerverifiedShow Answer

Overall, the tax system in Texas is generally considered to be regressive, which means that

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
Texas, like any state, faces the challen...
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